from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. >> i'm jim kramer. welcome to my world. you need to get into my world. >> they are nuts! they are nuts! >> there is a bull market somewhere. "mad money" you can't afford to miss it. i'm cramer. welcome to "mad money." other people want to make friends. i'm trying to save you some money. my job is not just to entertain but i'm trying to teach you. call me. nobody trusts you except the sec. not even the fed. that's my feeling about this despised market. market to have tens of billions of dollars worth of outflows. sell, sell, sell.

towards bonds. the averages don't seem to give up big gobs of points. even like days today. dow edged up 12 points. looked like a real ugly day at the beginning. i pointed out while i'm co-partner, not all innovation is for the betterment of mankind. we accept this principle many many walks of life. right now will is a huge backlash jence against genetically innovated food. we have a gigantic hate for nuclear power. i remember the days nuclear power utilities represented the peaceful harnessing in the atom. we all know and we all accept that progress has been called into question after three-mile island and fukushima.

one side of technology overwhelms the other. sent their armies over the top and into the progress of machine guns that made mince meat out of them. that's one of the reasons we have the geneva convention. to hawk some of the most vicious forms of progress in their tracks. to me right now the high speed traders in this generation equivalent to the german machine guns that mowed down thousands and the people being annihilated. that's you. the average investor trying to use stoksz cks to save money as generations have before you. as someone that wants to you make money in the stock market cares passionately about a level playing peeled my biggest obstacle convincing you to get into the game, not legit. for as long as we have had stocks we have always treated them as asset class. realistic and legitimate one. try to grow up.

it is one of several asset classes that were accepted as positive, constructive places to put your savings, cash, bonds, real estate and gold. in fact, over the long term stocks have been the best performing asset of all of those. last decade. gold has been unbelievable performer. so have bonds. cash, not so bad. only real estate lagged stocks. a lot to do with the discuss disgust many people feel towards stocks. same as the pulverizing of bank stocks. sector of so many of your port polios. that said, there is a difference between this stuff and the high frequency scalpers. individuals blame themselves for buying overvaluations of stock bubble. they get that. bank collapse is part in parcel of the great recession represented the risk people accept when fundamentals of companies get crushed. but the high-speed element,

element that caused the flash crash, facebook ip onto implode, element that forced the third largest stock exchange back to the ipo earlier this year. 9% decline in apple. the element caused capital go under to $440 million trading loss. individuals, they didn't sign up for that nonsense. until today i figured the government, particularly sec, used the software malfunctions as less important than the wardrobe malfunction that tthey dealt with at the super bowl a few years ago. the old principles of arthur levitt who decided the needs of the individual investor drum that of the professionals and convened panels to assess what needs to be done to make the process more fair for defenseless. he forced rules that leveled the playing field a lot of professionals didn't like. he didn't take any nonsense or pushback from the pros. not a professional regulator. genuine successful practitioner.

he was not intimidated. as is so off ten case with this sec. i miss him. we should all miss him turns out that the government does get, yeah, however, different part president of the government. sec but the chicago fed which put out an extraordinary let they are morning entitled how to keep the market safe in the year of high-speed trading. hey, look, they admit that this is a nightmare going on. fed letter acknowledges we can't roll back a lot of financial innovation. it has gotten too embedded. also exposes dirty little truth. high speed trading firms sacrificed the whole system we live. whole system we live by. sake of speed and they just can't set the machine guns fast enough. meanwhile, defenseless individual investors is the one from what it never thought was even a battlefield. the common sense used from the chicago fed serious of limits to make it high-speed trading can't bring the whole market down. stuff i know these pros will

hate. now i would have liked to see a recommendation of the old days when bear rates were checked by the rule forced short sellers to wait for higher prices before they could fire away and crush the stock. i would like to have read the need of the wisdom of triple etfs. that can destroy stocks in this new lower volume world. i guess i -- i have to be satisfied to see one branch of the government recognizing high-speed traders detriment and a problem. you know me. i have very little faith the government will do right by you. fate that returned capital via dividends that allows you to safe or create capital appreciation towards better products, great balanced dividends. have faith in the sec? only if the sec is the one that's on cbs on saturdays and they got galore in that. operations fair is fair. bottom line, the government isn't oblivious to the willy-nilly and embrace of engineering, high frequency

traders that hurt you. the government recognizes while progress can be good not all innovation breeds progress. some gets you slaughtered. it is that the branch of government wise to the problems, chicago fed, it isn't the one that matters. let's go to david in arkansas. david? >> caller: thank you for doing what you do for us. >> i appreciate that. thank you. >> caller: i have learned a lot from you in the last six years. i have a two-part question. which has the most upside, sirius logic or apple? and why? and what's the likelihood of apple splitting? >> cirrus logic has been an i amazing stock. i have been going over the few things i thought was doing wrong. i stayed on the apple bus. apple is still cheap. do i think apple will split? absolutely not nor do i think they care about that. juan in california. >> caller: hi, jim. my question is regarding time warner cable selling off their

7.2 shares of clearwater what what effect it will have on sprint. >> okay. they divorced themselves. sprint made it clear clearwater does not matter. sprint has done a lot of great things. don't look at sprint as a playoff clearwire. time warner cable is clearing up its books. clearwire is a speculative play for many of you. i have to tell you i wish you would stop speculating. not all innovation is for the betterment of mankind. this time with the financial engineering running amuck, it is driving you away from what used to be a legitimate asset class. we have to get it back and take it back. chicago fed gets that. i wish the sec did. >> coming up, topping out. new 52-week highs daily. markets soaring to the best levels in years. the s&p up over 15% in 2012. but can this bull run laps? cramer is taking on the technicals to find out on a

critical edition of "off the charts." and later, playing dress-up? forget tom-kat. tonight cramer is trying on a fashionable name that could be the next success. should you be slipping your portfolio into something more comfortable? plus, healthy headlines? the biggest bio tech names are showing off the new medical innovations this week. cramer has his eye on a pew drug makers that could provide the best medicine for your portfolio. find out what's at the top of jim's list just ahead. all coming up on "mad money." don't miss a seconds of "mad money." have a question? wheat cramer. #madtweets. send jim an e-mail. or give us a call.

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so where do we go from here? isn't that the big question?

last week's ben bernanke's inspired rally, what's this market's next move? maybe we will be treading water for a little while. for a little while. perhaps we are due for a bit of a pullback. a break so the buyers can catch their breath. after a pause, are we fooling ourselves that we believe this run isn't over? in order to answer these questions, they are the ones -- we are going off the charts tonight with the help of carolyn boroden. a brilliant technician that runs the website and my colleague at realmoney.com. i'm always telling her never to take your cue from the charts alone. that there they are only one tool belt. if you rely on them exclusively you get burned. she has been right about this market lately. it is almost eerie when i saw

the work she has done, looked back. she absolutely nailed this last run like no one else i saw. i think you would be -- have to be crazy not to listen to her going forward. i guess you can say that the queen is back and she is bigger than ever. remember, s&p bottomed on july 4. a week later off the charts segment on june 12, she told me she was drawing a line in the sand. take a look at the s&p's daily chart. she said her method, which allows -- numbers, that's a series of mathematical ratios found over and over again in nature and if you believe the chart, stock market as well, indicated that 2 june 4 bottom was the real deal. remember, she made this call. in june. okay. june 4 bottom was the real deal. and the s&p could be about to experience a major rally. that was in mid june she made this call. she told me listen, i want to make this call on air. you have to use this. she put the gun to her head. that was her confidence level. by the way, that was at a moment

just bvsh was terrified europe was about to blow up and china was slowing. doom and gloomers were totally -- all you heard from. based on a reading of the charts, she said things were about to get better. she didn't listen to the chatter. that's not what she is about. she came up with a price target that seemed absurd at the time. she said we could rally all the way up to 1464. 10% higher than where it was at the time. i didn't even want her to make the call. i thought it might be so embarrassing that that would be it. i couldn't have queen back on. queen would be toppled. take a look at this fast board. sure enough, last week the s&p peaked. not at 1464. not at 1468 but at 1474. just ten points above where she told us it was going. this was a babe ruth-style called shot. even if you don't buy into the technical analysis and think this stuff is much medieval, hocus poe cu

hocus-pocus, she has the hot hand. it pays to listen to the hot hand. at the moment, though, while she's still bullish, she's now more cautious than she has been. why? first of all, she's rigorous about target. s&p 500 is now in her target. target was based on extrapolate prosecuting the size of a previous swing. she calls that priced extension. she's often seen moves in after a major extension just like this one. often out of exhaustion. second, s&p's monthly chart, she sees some evidence we may be due for a pullback. reason, you look at the huge move from bottom in 2002. this is incredible. i-find this eerie. if you look at the peak at the end of 2007, in this move, the s&p ran up 807 points. keep that number in mind. 807 points over 60-week period. now since the generational bottomed in march of 2009, the s&p rallied how much?

807 points. i kid you not. this time in a shorter time frame. 807. 807. you know what, it is enough to make you feel like this stuff, like you should be like -- you know, worshipping the queen and not taking pictures of her top off -- kidding. believes that these moves will often be about the same size. which is why she has to be concerned that this long-term rally could be played out. with this s&p at 1474 which happens to be where we peaked last week. however, this is just one data point among many and so carolyn isn't -- isn't seeing any signs yet of a big pullback. it is something that's on the radar screen. if it is on her radar screen it is on my radar screen. what she would do right here? she thinks the s&p is a buy. buy on weakness. i think she ais allowed to say that. no. take look at this. clear version of the daily chart. all right. that is what i call it.

extended. if we get a pullback she believes you can buy. only as long as the s&p holds out above its low important september 4 of 1,396. 1396. that's the number. that's her new line in the sand. okay. line in the sand. always love that term. line in the sand. anyway if we drop below that level she thinks all bets are off. as long as the s&p stays above this line she win as pullback, calling it viable. take a look at this. let's get some upside here. how high could the s&p go from here? again, she thinks streets a buy on a pullback. if you get it and doesn't cause a breakdown below the except 4 line, she can see the s&p going to 1484. and then 1518. pretty easily. those targets are based on the same ratios allow her to nail the latest rally back in june. however, even the high are 15, 18 target is only about 4% above where we are now. so is this -- what we obviously

need more juice. not like the incredible move we had over the last lee months but very few that have been like that. if we go back to the monthly chart, she has longer-term targets for the s&p now. get excited here. break out above the ceiling of resistance at 1474, then she thinks it could all rallied to 1553. we want that. that -- get that above where we are now. for a much, much longer term view, we are talking about wave of the future. she can make the case using her technique and that the s&p may actually make its way up to 1823. wow. 25% gain above where we are now. probably take quite a long time to get will. plus if the s&p breaks down below 1396, remember that one, this is the support. she will throw all these upside targets out the window because that's how technicians work. hey, you know what, she gets the decreed and nailed it. i'm not going to say well, that's -- you know, what good is it if it comes back down and takes -- she nailed it for us.

here is the bottom line. where no one else believe whether she said it was a buy cautiously is bullish. she thinks we may be due for a pullback. it is a viable one as long as it doesn't break down below key levels. i never make decisions based solely on charts. this woman has the hot hand. and all of this is definitely worth mowing. so to me, let's use her analis and say the charts say no need to get aggressive here. wait for the pullback. but then do some buying. after the break i will try to make you more money. >> coming up, playing dress-up? forget tom-kat. cramer is taking a trip to spli splitsville. tonight he's trying on a fashionable name that could mean the next success. should you be slipping your portfolio into something more comfortable? healthy headlines? the biggest bio tech names are

showing off the newest in medical innovations this week. and cramer has his eye on a few drug makers that could provide the best medicine for your portfolio. find out what is at the top of jim's list. just ahead. all coming up on "mad money."

how did i get here? dumb luck? or good decisions? ones i've made. ones we've all made. about marriage. children. money. about tomorrow. here's to good decisions. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there.

if you want to find stocks with easy money hasn't already been made, if you want to own something that still has a lot of untapped upside, learn how to look at these losers and laggards. now most sum of the company's parts is actually worth more than the corporate hold. that's why i'm always promoting the have tus of breakups here on "mad money." it is not because i'm a cynical jerk. i'm talking about corporate breakups. create immense value for

shareholders by splitting up the underlying business. warner's c pair i will company that's not been able to keep up with the rest of the industry. that's especially true when it comes to their stock. the company which declared bankruptcy a little more than a decade ago then reorganized itself with the present structure makes sportswear, swimwear, intimate apparel, sold through department stores and own retail stores. you calvin klein. they have a license for speedo swimsuits and own olga's. no. i have enough shame not to wear a speedo out here. my staff certainly told me that they thought that i had the body to pull it off. now, we know from pvh which owns the calvin klein brand, the sales are off the charts for just about every type of apparel and from every licensed partner.

everyone that is except warnico. retail space is red hot right now. but it has not been able to keep up with it's peers and just not on a business side. it is up 39%. vf corp is up 29%. what a laggard. yeah. the company hasn't been able to execute. why do i have hope? breaking up is not hard to do. warnico could split itself up. you just, um, you know, no, let's not do that. you can sell the parts to buyers that might be able to do a better job of management.

it hasn't said anything off about spin offs. the company did get new leadership and after she took over she laid out new targets. i don't know if the company can hit those lofty goals and i like that she has a big, gold vision. she recognizes that they can generate a lot more than they are currently getting out of it. instead of trying to transform a dysfunctional company, why not try to take the quick and easy win? what i'm talking about here, let's start with calvin klein business and their underwear. according to pvh and this is the only segment of the calvin klein business underperforming.

why do i take this abuse? i have my own darn show. why do i allow them to make pictures of me? isn't it enough that i wear this? take that down. leave it up. anyway. underperforming 9% to 10% for the overall brand. warnico is not managing this brand well. she thinks the calvin klein side of the business could do 3 billion in revenues. but there is a natural buyer out there for the business and the buyer is -- ♪ >> pvh! i know that because they have said many times that they have

said, so. they weren't hitting the targets and pvh got the license back for free. pvh said they think they can do a $500 billion opportunity. they think they can turn the business into a huge profit by 2014. it has enough money on hand and a credit line to make this deal work. the fabulous ceo would love to do it. now that the easy money has been made. warnico says this division will do $3 billion in sales. so let's put a $3 billion price tag on this business and you are left with the rest of warnico.

>> this is a shirt i got at j. crew for about $25. the speedo brand. the volatile olga. the warner's intimate apparel. wow. geez, that is intimate. i could certainly see chaps and speedo being worth -- come on, this could be worth a lot to vf corporation. they but timberland last year for $2 billion. assuming they would be willing to pay roughly the same valuation for the non-calvin klein business, worth about $770 million. add it all up and you get a price far in excess of their current price, maybe dramatically more. it all has to do with a greater break up and sell that division. they have some terrific assets, as you can see, fabulous ones.

some of this stuff is just priceless. but the company hasn't been able to manage them. that means these brands, whether they are talking about the calvin klein jeans or chaps or speedo's are worth more than they are to themselves. they would get a heck of a lot more out of them. i'm begging you, the best way to create value for your shareholders is to break yourself up and sell all the pieces to interested buyers. it's the way to show the naysayers that this iteration cares more about shareholders than ever before and it's something that can be done tomorrow, not three years from now. i'd like to take a call from barbara in rhode island. how are you? >> good, how are you? >> you sound like a money guy. >> i certainly look the part. >> i listen to your expert advice on dean foods and i made some money. i bought 1,000 shares api didn't wait long enough until it got two $12 something because i

wasn't a that patient. but i hear there is a spin off to white wave business and i'm wondering what i should do. >> you got to hold on. that white wave is worth a lot particularly in a market that loves organic food and loves vegetarian foods and that's the way the future of that combination, when they split it is going to be worth a great deal of money. i need to go to match in the florida. >> what is your opinion? they got leaner and meaner. >> i think that's just a play on a better balance sheets and maybe a little bit better ceo. it's a very challenged enterprise in a market where retail has to be so on your gaming retail in order to get that stock moving. i don't see them on their game. i see them no longer off their game. that's not enough for me. it's not you it's me. better off as friends. no matter how they say it, breaking up is hard to do unless you are talking about stocks like warnick o. memo to you at warnick o, you are worth much more than the sum of your parts. stay with kramer.

>> coming up, healthy headlines? the biggest biotech names are showing off the newest in medical innovations this week and kramer has his eye on a few drugmakers that could provide the best medicine for your portfolio. find out what's at the top of jim's list, just ahead. now, that's what i call a test drive. silverado! the most dependable, longest lasting, full-size pickups on the road. so, what do you think? [ engine revs ] i'll take it. [ male announcer ] it's chevy truck month. now during chevy truck month, get 0% apr financing for 60 months or trade up to get the 2012 chevy silverado all-star edition with a total value of $8,000.

hurry in before they're all gone!

it is time for the lightning round. are you ready? let's start with marvin in new york. >> jim, bouillon from the windy city of new york. >> sweep. >> lulu lemon. >> i've got to tell you, even i think of the great mickey drexler from j. crew thinks that lulu lemon is a well-run company. i want to go to sam in connecticut. >>. >> mr. cramer, thank you for everything you do for us little

guys. my question is on magnum hunter resources. >> it is just a spec oil going to $120. that's where you needed to go back to a new high. i want to go to dennis in utah. >> thank you, thank you, thank you. with your advice for apple, and i got in listening to you at about $100 a share. >> yes, we've been behind that one for certain. what's up? >> today, ross. >> ross is part of a complex like a dollar tree. everyone is selling the value guys. i think that's a mistake. you should pick up 100 shares of ross tomorrow morning. let's go to birch in california. >> yes, are you still bullish on haynes? >> why not? haim did a good job. they delivered a good quarter. the stock is coming down. it did go to parabolic. it is giving up a little bit of

that. i'd leg into the story. valery in pennsylvania? >> how are you? >> real good. >> i'm a new older investor encouraged by your knowledge and your dedicated viewers. i'm calling about wells fargo. >> i want you to be big in wells fargo. going over wells fargo over the last four years and it stuck has not done nearly as well as it should have, given the fact that warren buffett is in there by and all the time and it has got 30% of america's mortgage market. i want you to pull the trigger right here. let's go to sean in new york. >> i was wondering about phm. >> it's good, it's not the best. toll brothers is the best. it's inexpensive versus the others but these stocks are all wrapped. i'm going to say don't buy until friday, which might cause the group to come back and you get a better entry. allison florida. >> hi jim, how are you. >> real good, alice. how are you?

>> i'm great, thank you. i'm calling today to find out about the cobalt international. i watched the show last february 13th, ran out the next day and i bought it. but it's dropped considerably since my pricing. >> it's still up a lot for the year. or you lose another one like magnum hunter. oil has to go up very big for the stocks to work. these are what i call options on crude and right now crude is not doing what we want to do if we want to buy the stock. let's wait for crude to come back. how about virginia in texas? >> thanks for taking my call. income trust us. >> i like the estate investment trusts and i want to pull the trigger tomorrow morning.

let's go to jim in connecticut. >> what do you see in the future for ups? >> a big cyclical but right now people don't like aerospace. i say that's wrong. under $80 you've got a real by in on technology. split the purchases half and half. that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade.

>> we are right smack in the middle of conference season this week. one of my favorite times of the year. you got a number of chances to learn about some terrific opportunities to buy. what should you be paying attention to? we highlighted last week on friday's game plan. tonight i'm drilling down the most exciting conference of the year, the ubs global life sciences conference which starts tomorrow. we want to focus on the biotech companies that are presenting so you know which ones are buying and which ones are too hot to handle. which are the best? let's just put it this way. the best specs, which of course i saved for last because i man inveterate tease. this is called a mark.

i often stand right here in front of everything. it drives everybody crazy. now i'm going to play by the tv rules that everybody is telling me i must or i'm going to be put into the journalism jail. how can these watch these presentations? if you're a client and your within spitting distance of new york city, the conference takes place at the grand hyatt in manhattan. for everybody else on of the companies make on of. companies make them available as webcasts. you have to go to their web sites to listen to them. let's listen to the big league players. this is driving this staff crazy. they know i know i'm in front of the barcalounger. first, allergan presents tomorrow morning at 8:00 a.m. you know we like them. you want to hear several things from the company. it's got the major medical aesthetics business including botox. we want to know what they think about their competitors. they've been testing treatment

for numerous different diseases on the market as a migraine drug to be let's see what they say about the other indications. we need more. we will be listening for other updates on allergan's pipeline. you know we think this is undervalued when the fedex is signaling a slowdown in the world economy. we want countercyclical stocks since allergan sales have been stable despite the weakness in global commerce. i thought that when david pyatt was here a couple weeks ago i thought he laid out a story that should take down $100. second, tomorrow at 11 am we get another one we've been really liking, gilead. this is the biotech we recommended last week as the company winning the race to cure hepatitis see. it has gotten away since i told you to buy it. we know that ubs belief the numbers are too low.

i think gilead tells an incredibly compelling story now that bristol-myers has dropped out of the race. stock has run more than 10%. they might not be done yet simply because when you get these biotechs with the right stuff you get a parabolic move. there is cramer fave celgene which we'll here from tomorrow. they have a terrific portfolio of anticancer drugs including its main product for multiple myeloma. this stock has been on a real tear lately and we want to hear more about their pipeline as well as how close they are to getting approved for new indications. if the news is good and i think it will be they can make a run at new highs. remember when everyone gave up at $60 except for us? in the ceo we trust. whenever you follow one of these conferences you've got to be careful not to get swept up a good stories. that's especially true when we are talking about names that can be incredibly risky. isis pharma, i think it's headed to close to the sun. presenting at 1:30 p.m. on wednesday, a unique story. the stock is up 100% year to date. no matter how good this sounds tomorrow, if you buy it up here

you are chasing. we never chase on that money. same goes with two that present tomorrow at 9:00. who says you can't make money in the stock markets? the stocks are too hot to handle and i think if you try to touch them now you can get singed, if not burned. out of the solar biotechs does that mean we can't have anything that we like? no, we're going to hear from someone i like very much. my favorite speculation name at this whole shindig is nps pharmaceuticals. this company's presentation is at 9 am tomorrow and i certainly recommend you listen to what they have to say. unlike the others i just mentioned they are not much of a highflyer. 8 oller and change stock on not only up 25%. two working with drugs for short bowel syndrome and hyper parathyroid is him.

orphan drug street diseases that affect a short number of people. that government gives companies that make these drugs all kinds of goodies like exclusivity and the ability to charge price is cheaper than the insurance companies responsible for trying to pay the bills. the drug for short bowel syndrome, a condition that affects the body's ability to absorb food and nutrients. this drug got pushed up when the fda asked for long-term safety studies. however, the fda will make a decision on whether to approve by the end of the year. i'm optimistic since the eu granted it last month and we heard european regulators have worked with the fda on a short bowel syndrome. if the guy gets approval it could sell in the second quarter of next year. the second shot on goal, another orphan drug could be approved and launched as soon as the second half of 2014. it treats hyperparathyroidism, a

disease where the body doesn't produce enough hormone and can't regulate its calcium or phosphorus levels, something that will leave a devastating level of organ damage. this has two orphan drugs in the pipe api want you to listen what they have to say tomorrow. there is no rush to buy the stock. it already has been said by the time the market opens. everyone will be watching and they'll know it. don't chase if the stock is up. the earliest catalyst is a month away when the fda panel evaluates. if you like what you hear from the company you've got nearly a month to wait for the pullback that happens after there is too much enthusiasm. then you buy into weakness. if that sounds too risky, how about cubist pharmaceuticals. they present tomorrow at 12:30. a sleeper play with real earnings, three drugs on the market and a robust pipeline with three drugs in clinical trials and many set to enter phase three by the end of the year. we want to know how their five your plan is progressing. this is a little $3 billion

company and it actually has a five year plan. generate $2 billion in sales by 2017. that seems doable. given the fact it has been living on the 52 week high there, it ought to pay rent in there. it isn't too crazy given that the company has long-term growth of 32% hit the it's not that expensive on a price to earnings growth rate. let's hear what cubist has to say about that plan, it's pipeline and a fantastic treatment for nasty drug-resistant infection that can be deadly. now you have the roadmap for tomorrow's like science conference, which i told you is the most important conference of the year. i want you to listen to the presentations by the big boys. don't get swept up i the little guys with red-hot stocks. if you are looking for something to buy i suggest watching nps pharma and cubist. neither stock has run too much and i both that they tell very good stories. i sold ice cream at veterans stadium ap they always started

the vendors shouting can't tell the players without a program. truer words have never been said about the phillies or the ubs shindig. mad money is back after the break. >> i think this rally is not about hope. i think it's about cold, hard facts. >> a gain of about 200 points for the dow industrial average. >> the rally is chock full of superlatives. >> how high can the markets go? >> you cannot fight the fact, you just buy everything. >> the iphone 5 is going to do more for the economy than qe 3. >> is it time to take the money off the table? >> [ male announcer ] when this hotel added aflac to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac!

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>> oil was down $5. sell the oil. anything oil service has to be jettisoned. that's how you expect people to react if oil were down $5 over five days. it would be wrong to take such

strong headed action but it is especially wrong after yesterday where oil actually did plummet $5 in a straight line before recovering at the bell. i was dazed by this. this is a big commodity. we know that stocks are thin despite the analyst half the stations that high-frequency trading enhances liquidity, something that isn't really true. nipping at the elation can't be stopped. i didn't think there were so few players in oil, too. i thought that market had real depth. you look at the sudden decline in oil from 2008 to 2009, the one that accrued down $100 pretty darned quickly. you saw a decidedly small number of contracts get canceled. almost new rigs got canceled at all because these projects, these big, giant oil projects require a long-term view on oil and the long-term view of all these companies is they can maintain their production growth with just the current number of rigs. they need more. their production growth is a must for cash strapped

companies. it's a must for private companies because they all trade and only a few companies had to cancel rigged contracts. they don't look at the day to day fluctuations. we know that pattern when the price of oil plummeted yet the stock seemed to trade on every whim of the futures. as you saw from the closing trading yesterday, even more meticulous, the ones that are buffeted by the futures tended to be the ones that least likely see damage and cancellations. the two i'm thinking about our national oilwell varco and schlumberger shape. the moves in the stocks are down there. devastating and if you wait a few days they're often plain wrong. i'm not tell you to take the other side of the trade just yet. oil is rallying off the bottom, has left the stocks at an unsustainable high. give the stocks a little room for further declined. i'm simply reminding you that in the worst oil selloff i've ever

seen, we had very few drilling cancellations and not a lot of earnings-per-share cuts tp i can't see there being many cancellations this time around either if we get any at all. some of that is new discoveries at the coast of africa that have got to be drilled, or drilling in the gulf. massive fines in brazil, so large they need i gigantic number from national oilwell varco. a lot of it comes from the need to find oil in the united states where technology has opened up whole new fields. one look at how chesapeake needs to exploit the fields, tells you that a futures plunge is downright meaningless. it took forever for natural gas drilling too slow and the price decline for oil like that is not going to happen. there is not a glut of oil. watch the hammering for a day or two and then get ready to buy the best of the breed, names like schlumberger shea and national oilwell varco. i know my charitable trust will

be doing the exact same thing. stick with cramer. i just want to give her everything. [ whistles ] three words dad, e-trade financial consultants. they'll hook you up with a solid plan. wa-- wa-- wait a minute; bobby? bobby! what are you doing man? i'm speed dating! [ male announcer ] get investing advice for your family at e-trade. [ male announcer ] introducing a reason to look twice. the entirely new lexus es and the first-ever es hybrid. this is the pursuit of perfection. try the #1 gastroenterologist recommended probiotic. align. align naturally helps maintain digestive balance. ♪ ooh, baby, can i do for you today? ♪ try align today.

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